Fee-Only Financial Planning in North Carolina

Contact Us at: (919) 228-6312

Category Archives: central bank sugar bombs

and the BoE too

On Monday this week I did a blog post wherein I wondered which central bank would spike the punch bowl this week to keep the party going / stop it from ending. I did this because the Greedometers suggested stock market pain was once again on our doorstep. On Tuesday morning my question was answered when the PBoC dropped bank reserve ratios in a […] Read the rest of this entry »

Which central banker will threaten to spike the punch bowl this week?

This is a huge week for earnings with approximately 200 S&P500 companies reporting. However, earnings have not mattered to S&P500 company / index prices in many years. You are probably aware that as of late January 2018, with the S&P500 setting new all time highs near 2900 we have these metrics: Top 4 most expensive S&P500 points in time as measured by Price to […] Read the rest of this entry »

Kuroda-san: QE taper 2019

BOJ Governor Kuroda hit the wires last night by hinting the BoJ may begin maybe possibly thinking about the potential to maybe begin reducing (tapering) its mammoth QE program in 2019. Mammoth is too gentle a term for the BoJ’s QE program. Epic works better. With newly printed QE-yen, the BoJ has been buying every newly issued JGB (Japan federal government bond), and with […] Read the rest of this entry »

4 rate hikes : testing

The new Fed Chairman Powell gave Congressional testimony this week about the economy, inflation, and interest rates. In summary (to paraphrase): the economy is doing well and going to continue to do so inflation is on track to reaching our 2% target unless something bad happens, we’ll likely raise interest rates 25bps four times this year. NY Fed Prez Bill Dudley chimed in a […] Read the rest of this entry »

Central bank sugar bombs (release the Bullard)

Presented with no comment….        

Release the Rosengren

Boston Fed Prez Rosengren did a scheduled speech this afternoon. A link to the high points… https://www.bostonfed.org/news-and-events/news/top-takeaways-bard-college-talk-041917.aspx Notables: in the future, the weak economy “may necessitate more frequent use of large-scale asset purchases during recessions.” “quite likely” we’ll see more central bank QE programs in the future Fed “would take a very gradual approach to balance sheet reduction.” No obvious risk-on response from asset markets. Hmmm. […] Read the rest of this entry »

Release the Dudley!

A series of Fed leaders spoke this week. They all indicated we’d see a rate hike in 2 weeks time (next FOMC meeting March 14-15).  This culminates with Fed chair Yellen today (then it’s 1.5 weeks of blackout).  In my years of following the Fed, NY Fed Prez Dudley has been the most powerful/effective speaker -aside from the Fed chair- in that his comments […] Read the rest of this entry »

BoJ: No more overt sugar bombs

In a stunning interview with Reuters (link here) BoJ chief Kuroda admitted that low interest rates are hurting bank profitability and sowing the seeds for the next financial crisis.  How about that?  No more sugar bombs for you — at least not overtly. Don’t doubt that the BoJ will remain busy behind the scenes hitting the bid relentlessly in the futures market for the […] Read the rest of this entry »

Hello BoJ

At 1pm N America time (2am Japan), and ten minutes after the cash SPX dropped through the 100dema (2125), the BoJ blinked and posted that it would consider more deeply negative rates at its meeting next week. Brainard’s comments from yesterday was not strong enough to launch a sustained short squeeze. She needed help. This BoJ comment has had an impact on the price […] Read the rest of this entry »

Another great Koo video.

Another excellent video from Koo. He talks about the trap created by QE and that markets are in for many years of high volatility.  If anyone can connect me with Koo, I’d be grateful. I think he would be very interested to see the correlation of Greedometer crash warnings with central bank sugar bombs being dropped over the past 17+ years –and how long […] Read the rest of this entry »